LONDON: Uber’s rival taxi operators in England and Wales will not face a 20 percent VAT charge on their profit margins outside of London after the ride-hailing firm lost its appeal on Tuesday against a previous ruling.
Uber had sought a declaration that rival private-hire taxi operators enter into a contract with passengers, meaning operators must charge 20 percent value added tax (VAT) outside London as Uber is required to do.
It brought the case after a 2021 Supreme Court ruling that Uber drivers were workers, making them eligible for the minimum wage and holiday pay, and making Uber subject to VAT for rides.
Uber sought to have the same terms applied to rival operators and the High Court ruled in its favor last year. The ruling applied to rides in England and Wales outside London, which has a different regulatory regime.
However, that ruling was reversed by the Court of Appeal in July 2024 following a challenge by private hire operators Delta Taxis and platform Veezu.
